How do I invest in diamonds? Will I be able to sell my diamonds after wearing them as jewellery?
Diamonds can be used for investments, but buyers of used diamonds such as pawnshops often offer a lower price for the diamond. How then should diamonds be sold to ensure that the value is retained?
Can diamonds be used as an investment vehicle?
Diamonds are high in value and small in size, making them a highly space-efficient store of value and serve as an investment vehicle. As a commodity, the price of diamonds is affected by demand and supply. This also means that the price of diamonds can go up as well as go down. Based on history, the price of diamonds has increased over time, but at a snail’s pace. As a result, when one invests in diamonds, they can consider their capital to be locked up for a period of time. It would not be feasible to expect to make a huge profit off a diamond in the short term.
Diamonds are the hardest substance in the world, with a Mohs rating of 10. They do not wear and tear even when worn regularly in daily jewellery pieces. However, prices at jewellers are often not transparent, and the markup for the setting of the diamond into a piece of jewellery can often be a huge proportion of the price of the gem itself. After a piece of jewellery ages, the metal in the jewellery may not be able to hold its previous value is the largest proportion of the depreciation cost. This leads to the impression that jewellery does not serve as a good investment vehicle due to the high levels of depreciation and this can put off potential investors.
When purchasing loose diamonds, the choice to invest is put back into the hands of the consumer. By setting a diamond into a piece of dazzling jewellery, consumers are able to enjoy owning the stone while placing their money in a valuable appreciating asset. When the time comes, and consumers decide to sell their diamond for reasons of realising profit or even to upgrade their gem, consumers will be able to sell the gem for a large sum of money. This allows consumers to enjoy the jewellery pieces without high levels of depreciation.
How do I ensure that I am able to get value out of my diamond when I want to sell it?
The choice of method in which to sell the gem is just as important, if not more, as it is to select a diamond that will retain its value. Traditional avenues such as pawnshops often do not offer a sufficient amount for the value of the diamond. On the other hand, GXT World is able to provide a transparent system that consumers can use to sell their diamonds. With GXT World’s consignment system, consumers are able to sell their diamonds on the platform, reaching GXT World’s extensive worldwide network of global users. When trading through the GXT World diamond trading platform, sellers are able to reach out to a large group of global buyers. This can increase the chance that sellers will be able to find a buyer that is looking for a diamond that shares the same characteristic as the one that they are looking to sell.
What if fraudulent sellers want to take advantage of GXT World’s platform?
Another potential issue with the diamonds being used as an investment vehicle is the worry about authenticity. When selling diamonds, GXT World only allows diamonds that are GIA or IGI certified to be listed on the platform, providing our customers with reassurance that all diamonds purchased from our platform are authentic. As such, buyers will be able to purchase even second-hand diamonds through GXT World’s diamond trading platform with peace of mind.
GXT World strives to provide transparency to customers and promises the best quality along with reasonable prices. Both sellers and buyers of second-hand diamonds would be able to be assured of transparency, with sellers assured reaching a large audience and buyers assured of authentic diamonds.